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Friday, July 10, 2015

Leavenworth business owner indicted in 2014 indicted again on bank fraud charges

U.S. Department of Justice

KANSAS CITY, KAN. - A Kansas City area business owner indicted in 2014 on federal bank fraud charges has been indicted again on charges of committing financial crimes while awaiting trail, U.S. Attorney Barry Grissom said today.

Brenda Wood, 47, Leavenworth, Kan., was indicted in August 2014 on ten counts, including five counts of bank fraud, one count of theft from an employee benefit program and four counts of violating the Employee Retirement Income Security Act.

On Wednesday, a federal grand jury returned an indictment adding 16 counts, including eight counts of bank fraud, seven counts of aggravated identity theft and one count of committing a felony while on pretrial release in a federal case.

Allegations in the new indictment include:

Wood ran a check kiting scheme by opening checking accounts in the names of various businesses and exchanging and cross depositing checks among them.

Wood used another person’s Social Security number to open a checking account for a business named “Everything Real Estate, Inc.”

Wood used another person’s Social Security number to open a checking account for a business named “20 W 9th, LLC.”

Wood used another person’s identity to obtain an American Express card.

Wood used another person’s Social Security number to open a checking account for a business called “Shelter Management, LLC.”

Wood provided false information in an application for a loan from Merchant from Merchant Advance Express.

Wood provided false information in an application for a loan from US Funding.

Wood used another person’s Social Security number to open a checking account for a company doing business as “Action Real Estate Services.”

Upon conviction the crimes carry the following penalties:

Bank fraud: A maximum penalty of 30 years and a fine up to $1 million on each count.

Theft from an employee benefit program: A maximum penalty of five years and a fine up to $250,000.

Violation of the Employee Retirement Income Security Act: A maximum penalty of 10 years and a fine up to $250,000.

Aggravated identity theft: A mandatory two years to be served consecutively and a fine up to $250,000 on each count.

Wire fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.

Committing a felony while on release: A maximum penalty of 10 years and a fine up to $250,000.

The Department of Labor, Office of Inspector General, the Special Investigator General for the Troubled Asset Relief Program, the Department of Labor Employee Benefits Security Administration and the FBI investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.